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Intro to MOOWR

Duty Saving Calculator -
MOOWR Scheme

Calculates net profit or loss upon opting for MOOWR scheme

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Background

Manufacturing & Other Operations in Warehouse Regulations (MOOWR) allows import of capital goods including used ones without upfront payment of duties of customs. The scheme does not mandate any export obligation & is particularly suitable for businesses having major domestic sales with nil or marginal exports. Customs duty is payable when such capital goods are sold in DTA after the useful life is over. Also, no duty is payable if such goods are retained/re-exported/destroyed.

Further, units having substantial raw material imports can accrue savings in working capital costs by way of deferment of Customs duties on imports.

However, a MOOWR unit is not eligible for export incentives viz. Remission of duties & taxes on export products (RoDTEP) & All Industry Rate of duty drawback (‘AIR’). Operating as a regular unit availing AIR is more beneficial when majority of the raw materials used in export goods are domestically sourced.

Optitax’s MOOWR decision matrix/Duty Saving Calculator factors above aspects & provides a broad-level analysis which will enable the user to take a considered decision.

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